It also influences stock and fixed price markets. The WPI is published by the Economic Adviser in the Ministry of Commerce and Industry. The Wholesale Price Index focuses on the price of goods traded between corporations, rather than the goods bought by consumers, which is measured by the Consumer Price Index. The purpose of the WPI is to monitor price movements that reflect supply and demand in industry, manufacturing and construction. This helps in analyzing both macroeconomic and microeconomic conditions.
Calculation
The wholesale price index (WPI) is based on the wholesale price of a few relevant commodities of over 240 commodities available. The commodities chosen for the calculation are based on their importance in the region and the point of time the WPI is employed. For example, in India about 435 items were used for calculating the WPI in base year 1993-94 while the advanced base year 2011-12 uses 697 items.[1] Currently the base year has been revised from 2004-05 to 2011-12 by the Office of Economic Advisor(OEA), Department for promotion of industry and internal trade Ministry of Commerce and Industry to align it with the base year of other macro economic indicators like the gross domestic product (GDP)and Index of Industrial Production (IIP).[2]
Under primary article group of the new WPI there are 117 items against earlier 98, while fuel and power category remains static at 16. In the new series, there are 564 items of manufactured products compared to 318 items earlier.
The indicator tracks the price movement of each commodity individually. Based on this individual movement, the WPI is determined through the averaging principle. The following methods are used to compute the WPI:
The Laspeyres Formula is the weighted arithmetic mean based on the fixed value-based weights for the base period.
The Ten-Day Price Index is a procedure under which, “sample prices” with high intra-month fluctuations are selected and surveyed every ten days by phone. Utilizing the data retrieved by this procedure, and with the assumption that other non-surveyed “sample prices” remain unchanged, a “ten-day price index” is compiled and released.
Monthly price indexes are compiled by calculating the simple arithmetic mean of three ten-day “sample prices” in the month.
In May 2021, the Wholesale Price Index (WPI) soared to 12.94 per cent, the highest in the past decade.[3]
wholesale, price, index, this, article, multiple, issues, please, help, improve, discuss, these, issues, talk, page, learn, when, remove, these, template, messages, this, article, require, cleanup, meet, wikipedia, quality, standards, specific, problem, last, . This article has multiple issues Please help improve it or discuss these issues on the talk page Learn how and when to remove these template messages This article may require cleanup to meet Wikipedia s quality standards The specific problem is Last set of changes need wikifying Please help improve this article if you can November 2012 Learn how and when to remove this template message This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Wholesale price index news newspapers books scholar JSTOR December 2009 Learn how and when to remove this template message Learn how and when to remove this template message The Wholesale Price Index WPI is the price of a representative basket of wholesale goods Some countries like the Philippines use WPI changes as a central measure of inflation But now India has adopted new CPI to measure inflation However United States now report a producer price index instead It also influences stock and fixed price markets The WPI is published by the Economic Adviser in the Ministry of Commerce and Industry The Wholesale Price Index focuses on the price of goods traded between corporations rather than the goods bought by consumers which is measured by the Consumer Price Index The purpose of the WPI is to monitor price movements that reflect supply and demand in industry manufacturing and construction This helps in analyzing both macroeconomic and microeconomic conditions Calculation EditThe wholesale price index WPI is based on the wholesale price of a few relevant commodities of over 240 commodities available The commodities chosen for the calculation are based on their importance in the region and the point of time the WPI is employed For example in India about 435 items were used for calculating the WPI in base year 1993 94 while the advanced base year 2011 12 uses 697 items 1 Currently the base year has been revised from 2004 05 to 2011 12 by the Office of Economic Advisor OEA Department for promotion of industry and internal trade Ministry of Commerce and Industry to align it with the base year of other macro economic indicators like the gross domestic product GDP and Index of Industrial Production IIP 2 Under primary article group of the new WPI there are 117 items against earlier 98 while fuel and power category remains static at 16 In the new series there are 564 items of manufactured products compared to 318 items earlier The indicator tracks the price movement of each commodity individually Based on this individual movement the WPI is determined through the averaging principle The following methods are used to compute the WPI The Laspeyres Formula is the weighted arithmetic mean based on the fixed value based weights for the base period The Ten Day Price Index is a procedure under which sample prices with high intra month fluctuations are selected and surveyed every ten days by phone Utilizing the data retrieved by this procedure and with the assumption that other non surveyed sample prices remain unchanged a ten day price index is compiled and released Monthly price indexes are compiled by calculating the simple arithmetic mean of three ten day sample prices in the month In May 2021 the Wholesale Price Index WPI soared to 12 94 per cent the highest in the past decade 3 See also EditConsumer price index Inflation Monetary Union Index of Consumer Prices Price index Producer price indexReferences Edit Govt plans to revise WPI base year to 2012 business standard PTI July 24 2011 Retrieved 13 June 2014 http eaindustry nic in uploaded files Press Release pdf bare URL PDF Samrat Sharma June 15 2021 High inflation may dent India s Covid hit economy further India Today Retrieved 2021 10 14 This international trade related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Wholesale price index amp oldid 1119804001, wikipedia, wiki, book, books, library,
